[DK Goel] Q. 19 Financial Statements (with Adjustments) Solutions Class 11 CBSE (2025-26)
Solutions of Question number 19 of Chapter 20 Financial Statements (with Adjustments) DK Goel class 11 CBSE (2025-26)
From the following Trial Balance of Geeta, you are required to prepare:
(i) Trading and Profit and Loss Account for the year ended on 31st March, 2019, and
(ii) Balance Sheet as at that date.
| Debit Balances | ₹ | Credit Balances | ₹ |
| Stock on 01.04.2018 | 70,000 | Capital | 3,00,000 |
| Plant and Machinery | 3,50,000 | Wages Outstanding | 4,000 |
| Rent | 30,000 | Sales | 5,00,000 |
| Depreciation on Plant and Machinery | 15,000 | Creditors | 45,000 |
| Wages | 20,000 | Bills Payables | 16,000 |
| Salary for 11 months | 11,000 | Discount | 12,000 |
| Cash | 27,000 | Commission | 8,000 |
| Purchases | 2,70,000 | ||
| Debtors | 80,000 | ||
| Discount | 2,000 | ||
| Carriage Inwards | 4,000 | ||
| Bad Debts | 6,000 | ||
| 8,85,000 | 8,85,000 |
Adjustments:
(i) Stock on 31st March, 2019 was ₹ 96,000.
(ii) Stock destroyed by fire was ₹ 6,000 and the Insurance Company accepted a claim for ₹ 3,600.
(iii) ₹ 1,500 paid as rent of the office was debited to Landlord’s account (included in Debtors).
(iv) Write off further bad debts ₹ 4,000.
(v) Sales include sales on return basis. Approval for sale of ₹ 2,500 has not been received till 31.03.2019. The rate of gross profit on this sale was 25% on cost.
(vi) Create a provision for Doubtful Debts on Debtors 5%.
[Ans. Gross Profit ₹ 2,37,500; Net Profit ₹ 1,81,000; Balance Sheet total ₹ 5,47,000.]
Solution:-
Hints:
(i) ₹ 2,500 will be deducted from Sales and Debtors for cancellation of sales on a return basis. Also, the cost of such goods i.e., ₹ 2,000 will be added to Closing Stock.
(2) New Provision will be 5% on ₹ 72,000.
